Sabar Dairy chalks out Rs 150 cr spread

Himmatnagar-based Sabarkantha District Co-operative Milk Producers' Union Ltd, popularly known as Sabar Dairy, is planning to increase its milk processing capacity by setting up another plant. The dairy, which is a member of the Gujarat Co-operative Milk Marketing Federation (GCMMF), plans to invest Rs 150 crore for the expansion.

Besides, it is contemplating a milk processing plant with a capacity of three lakh litre per day at Haryana.

The dairy will spend Rs 110 crore to set up the milk processing plant of 1 million litre near its existing facility over the next two years. The move comes in the wake of higher milk procurement of over 1.25 million litre per day, which is almost 20 per cent higher over past year. The dairy's current milk processing capacity is 1 million litre.

The dairy has to send excess milk to NDDB's mother dairy in Gandhinagar due to insufficient milk processing capacity. "We are also planning a milk powder plant at our existing premises. However, it would depend on the procurement trend. If it goes through, it will be a 60-tonne plant," BM Patel, managing director, Sabar Dairy, said.

The company is in the process of acquiring land for the Haryana plant which is likely to come up in the next two years. It would spend Rs 40 crore on the plant.

The dairy registered a turnover of Rs 850 crore for the fiscal 2007-08 and is targeting Rs 1,000 crore for the fiscal 2008-09.